Great thread; just saw this documentary, and wanted to post it here.
Santa's Workshop - Inside China's Slave Labour Toy Factories
This is recent, posted Dec 3, 2011
Its 32 minutes. The first 10 min, and the last 2 min, is a good summary.
This confirms my feeling that it is better to buy something made in Taiwan, South Korea, Japan, anywhere other than China. Easier said than done I know; every item I looked at in Costco the other day was made in China- from the Snap-on tools (!!! they used to be so proud to be made in USA), to the Stanley tools, to the Hitachi drills (I thought they were Japanese?), to the Head ski gloves.